Govt Announces Official Start Off U.S. Dollar Rate
23 February 2019
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By Paul Nyathi|Government has officially announced the $1 – $2.50 RTGS as the official starting exchange rate of the Zimbabwean currency to the United States Dollar.

The official rate was announced by Reserve Bank of Zimbabwe governor John Magudya at a breakfast meeting with captains of industry on Friday morning in Harare.

“Since we are starting a new concept all import invoices have to be resubmitted to the banks to avoid distortions…the rate will open at $1:2,50 (RTGS) as per agreement with foreign currency dealers in the banks. Demand and supply will determine the rate going forward,” – RBZ governor John Mangudya said.

Banks immediately adopted the rate but there was no significant foreign currency business with the dollar as suppliers resisted the exchange rate while banks themselves did not have the U.S. dollars.

The parallel market meantime maintained at $1 – $4.00 RTGS Dollars. The rate is expected to start sky rocketing early next week when business adjusts to the new monetary policy.

Economists predict that the dollar will shoot up to $15 RTGS Dollars to the U.S. Dollar before stabilising.